Klobuchar: Cell phone fees like a ‘rigged carnival game’
Tuesday, June 01, 2010 at 9:10 am
- 9 Comments
Sen. Amy Klobuchar continued to press for reform in the telecom industry late last week following a report by the Federal Communications Commission (FCC) showing concern by Americans over cell phone billing practices. Klobuchar has introduced legislation that would prorate early termination fees and make cell phone billing more transparent.
The FCC conducted a survey of cell phone users in early May, and the results (below) demonstrate that many cell phone users have experienced “bill shock” — or unexpected charges on their cell phone bill. Some highlights from the survey:
• Eighty-three percent of adult Americans have a cell phone, and of those “17 percent of American adults with a personal cell phone said that at one time their cell phone bill increased suddenly from one month to the next, even though they had not changed their calling or texting plans.”
• 88 percent said their cell phone company didn’t contact them after a sudden rate increase and 84 percent said their cell carrier didn’t contact them prior to a sudden increase. 54 percent said they would have to pay an early termination fee (ETF), and 18 percent, or about one in five cell phone users, did not know whether or not they would be charged an ETF.
• Almost half, or 47 percent, did not know what the amount of the ETF would be if they tried to get out of their contract.
Those numbers prompted Klobuchar to ramp up her efforts to pass a bill modifying those fees.
“Nearly two out of three Americans have seriously considered switching cell phone providers but ultimately decided to stay with their current provider because of a cancellation fee,” Klobuchar said in a statement. “Like a rigged carnival game, wireless providers bury these fees in the fine print and slam consumers if they try to find better service or save a few bucks in their monthly bill.”
She noted that last week AT&T increased their ETF to $325 starting June 1. And late last year, Verizon doubled their fee from $175 to $350. Klobuchar said it was that increase that spurred her to look into the issue.
“The FCC’s consumer survey confirms what we have known for a long time – that confusing Early Termination Fees undermine competition and result in less consumer choice,” she said.
Read the FCC’s report:
Follow Andy Birkey on Twitter9 Comments
Comment posted June 1, 2010 @ 9:56 am
There doesn’t appear to be a single aspect of daily life that Amy Klobuchar hasn’t targeted for federal legislation. Look in the dictionary under “Nanny state” and it surely includes a picture of our dear Amy.
Comment posted June 1, 2010 @ 1:09 pm
And Dennis has his picture next to “corporate shill”.
Comment posted June 1, 2010 @ 1:42 pm
Ms. Klobuchar,
Thank you for your efforts on behalf of all Minnesotans. We are proud to have you as our guiding light.
Comment posted June 1, 2010 @ 2:29 pm
Hey Dennis if the alternative to the “nanny state” is the tender mercies of ATT and British Petroleum, I’ll take Nanny. She’s less apt to steal every dim I have while trying to poison me and every living thing within 500 miles…
Comment posted June 1, 2010 @ 3:27 pm
When ATT or BP puts you in jail for not buying their products, I’ll agree with you. I’m not surprised you people actually prefer the nanny state, though. It shows.
Comment posted June 1, 2010 @ 4:01 pm
Dennis, keep up with the times. The Republicans actually want the individual mandate because it benefits their insurance company masters. But no doubt you really do believe that BP will fix the problem in the Gulf on their own, without any pressure from the government, instead of trying to cover it up and pretend it’s not as bad as it really is.
Comment posted June 1, 2010 @ 10:26 pm
Preposterous. At the carnival the sucker actually thinks he might win. Everyone knows you pay all the fees on the cable/phone/cell bill, even the silly “little” taxes the government imposes. Are we still paying for the War of 1812 on our phone bills?
>>>> I’ll take Nanny. She’s less apt to steal every dim I have while trying to poison me and every living thing within 500 miles…
That’s so wrong it’s sad to even have to argue about it. Nanny has no interest in your wellbeing, no sanction for negligence, doesn’t rely on customer satisfaction for sustenance.
Cell phone companies, like most private concerns, provide value to consumers that most government pukes could only dream of. And, unlike government, costs are going DOWN.
Comment posted June 2, 2010 @ 9:14 am
It is obvious that Little Jimmy has either never had a cell phone or never paid a cell phone bill… well that and he spends the majority of his time admiring his large colon.
Libertarians… the absolute dumbest “smart” people you will ever meet.
Comment posted June 2, 2010 @ 12:10 pm
>>>> It is obvious that Little Jimmy has either never had a cell phone or never paid a cell phone bill
Never ceases to amaze and amuse me; all leftist conclusions are provably false.
Besides, did Minnesota elect a Senator, or a consumer advocate? Well, I couldn’t find the prize in my box of sugar puff cereal. Can she help?
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